Air India which incurred losses over `55 billion during both FY 2008-09 and 2009-10, had signed a multimillion dollar deal with Australia based Cato Purnell Partners for a major rebranding exercise to be showcased during the CommonWealth Games. The estimated value of the deal was $1.6 million; but in the wake of losses, the rebranding exercise has been dumped. Civil Aviation Minister Praful Patel has said that amidst such loss, the hefty amount for rebranding was uncalled for. However, the company is fulfilling its commitment towards the Games as it has to fly all the players and delegates free which will cost around `500 million. Lack of sponsorship from the private sector for the beleaguered games has to be partly borne by the national carrier adding to its liabilities. With the latest news of Air India suing Boeing for a billion dollar amount (for delayed delivery of carriers), one can imagine that push is coming to shove.

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Source : IIPM Editorial, 2011.

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

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